Cinctive Capital Management LP Makes New $5.90 Million Investment in The Charles Schwab Corporation $SCHW

Key Points

• Cinctive Capital Management LP has made a new investment of $5.90 million in The Charles Schwab Corporation, acquiring 75,400 shares during the 1st quarter.
• The company's stock saw a slight decline of 0.1% and trades at $96.06, while having a market cap of $174.36 billion.
• Charles Schwab's quarterly earnings exceeded estimates, reporting $1.14 EPS, up from $0.73 EPS during the same quarter last year, along with a 24.8% increase in revenue.

Cinctive Capital Management LP acquired a new position in The Charles Schwab Corporation (NYSE:SCHW - Free Report) during the 1st quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The institutional investor acquired 75,400 shares of the financial services provider's stock, valued at approximately $5,902,000.

Other hedge funds have also bought and sold shares of the company. Atwood & Palmer Inc. purchased a new stake in Charles Schwab in the 1st quarter worth approximately $25,000. Westside Investment Management Inc. boosted its position in Charles Schwab by 75.0% in the 1st quarter. Westside Investment Management Inc. now owns 350 shares of the financial services provider's stock worth $27,000 after purchasing an additional 150 shares in the last quarter. Stone House Investment Management LLC purchased a new stake in Charles Schwab in the 1st quarter worth approximately $31,000. Activest Wealth Management boosted its position in Charles Schwab by 6,650.0% in the 1st quarter. Activest Wealth Management now owns 405 shares of the financial services provider's stock worth $32,000 after purchasing an additional 399 shares in the last quarter. Finally, WFA Asset Management Corp purchased a new stake in Charles Schwab in the 1st quarter worth approximately $33,000. Hedge funds and other institutional investors own 84.38% of the company's stock.

Charles Schwab Stock Down 0.1%

NYSE SCHW opened at $96.06 on Thursday. The business has a fifty day moving average price of $94.99 and a 200 day moving average price of $86.13. The Charles Schwab Corporation has a one year low of $61.16 and a one year high of $99.59. The company has a debt-to-equity ratio of 0.47, a quick ratio of 0.55 and a current ratio of 0.55. The company has a market cap of $174.36 billion, a P/E ratio of 25.82, a P/E/G ratio of 0.94 and a beta of 0.96.

Charles Schwab (NYSE:SCHW - Get Free Report) last posted its quarterly earnings data on Friday, July 18th. The financial services provider reported $1.14 EPS for the quarter, beating the consensus estimate of $1.10 by $0.04. Charles Schwab had a return on equity of 19.30% and a net margin of 33.68%.The firm had revenue of $5.85 billion during the quarter, compared to the consensus estimate of $5.64 billion. During the same period in the prior year, the company earned $0.73 EPS. The firm's revenue was up 24.8% compared to the same quarter last year. Research analysts anticipate that The Charles Schwab Corporation will post 4.22 EPS for the current fiscal year.

Charles Schwab Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Friday, August 22nd. Shareholders of record on Friday, August 8th were paid a $0.27 dividend. The ex-dividend date of this dividend was Friday, August 8th. This represents a $1.08 dividend on an annualized basis and a dividend yield of 1.1%. Charles Schwab's dividend payout ratio (DPR) is 29.03%.

Charles Schwab announced that its Board of Directors has initiated a share repurchase program on Thursday, July 24th that allows the company to buyback $20.00 billion in shares. This buyback authorization allows the financial services provider to purchase up to 11.6% of its shares through open market purchases. Shares buyback programs are generally a sign that the company's management believes its shares are undervalued.

Wall Street Analyst Weigh In

Several equities research analysts have commented on SCHW shares. Barclays upped their price objective on Charles Schwab from $106.00 to $113.00 and gave the stock an "overweight" rating in a research report on Friday, July 18th. Truist Financial increased their target price on Charles Schwab from $107.00 to $112.00 and gave the company a "buy" rating in a research report on Friday, August 15th. Wells Fargo & Company set a $102.00 target price on Charles Schwab and gave the company an "overweight" rating in a research report on Friday, July 18th. Piper Sandler increased their target price on Charles Schwab from $80.00 to $92.00 and gave the company a "neutral" rating in a research report on Tuesday, July 15th. Finally, Morgan Stanley increased their target price on Charles Schwab from $117.00 to $131.00 and gave the company an "overweight" rating in a research report on Tuesday, July 29th. Sixteen research analysts have rated the stock with a Buy rating, three have issued a Hold rating and two have assigned a Sell rating to the company's stock. According to MarketBeat.com, Charles Schwab presently has a consensus rating of "Moderate Buy" and an average price target of $99.60.

Insiders Place Their Bets

In other Charles Schwab news, insider Paul V. Woolway sold 3,205 shares of the firm's stock in a transaction on Tuesday, September 2nd. The stock was sold at an average price of $95.20, for a total value of $305,116.00. Following the completion of the sale, the insider directly owned 37,983 shares of the company's stock, valued at $3,615,981.60. This trade represents a 7.78% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, insider Nigel J. Murtagh sold 24,096 shares of the firm's stock in a transaction on Tuesday, July 29th. The stock was sold at an average price of $97.91, for a total value of $2,359,239.36. Following the completion of the sale, the insider directly owned 58,999 shares of the company's stock, valued at $5,776,592.09. This trade represents a 29.00% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 298,214 shares of company stock worth $29,022,580. 6.30% of the stock is currently owned by company insiders.

Charles Schwab Company Profile

The Charles Schwab Corporation, together with its subsidiaries, operates as a savings and loan holding company that provides wealth management, securities brokerage, banking, asset management, custody, and financial advisory services in the United States and internationally. The company operates in two segments, Investor Services and Advisor Services.

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